AI-Generated Home Listings Feel ‘Un-Homely’—and Buyers Are Creeped Out
The use of artificial intelligence to generate images for real estate listings is gaining traction, but not without raising concerns among both agents and potential homebuyers. Initially seen as a cost-saving measure, the technology promises to virtually stage homes without the expense of physical furnishings. However, early experiences suggest that these AI-generated depictions may be creating a sense of unease and disappointment, rather than fostering desire.
The Rise of Virtual Staging
Nearly 70 percent of Realtors surveyed have already experimented with AI tools, according to a recent industry report. For Illinois-based agent Kati Spaniak, the appeal was clear: reducing overhead costs. She tested the technology on a home north of Chicago that, while promising on paper, presented poorly in empty photographs. Spaniak opted for AI-created images featuring furniture and décor, hoping to enhance the property’s appeal.
A Disconnect Between Image and Reality
However, Spaniak noticed that prospective buyers viewing the AI-enhanced photos appeared “disappointed, even disoriented.” They struggled to articulate the source of their dissatisfaction, simply feeling “let down.” This suggests that the technology, while capable of creating visually appealing images, may be failing to connect with buyers on an emotional level.
The manipulation inherent in real estate marketing isn’t new—wide-angle lenses and even the scent of baked goods have long been employed to create a favorable impression. But AI-generated images introduce a different kind of disconnect. A successful sale, agents know, relies on evoking feelings of aspiration and security, allowing potential buyers to envision themselves living in the space.
The “Uncanny Valley” of Home Buying
The issues with AI-generated images may stem from a psychological phenomenon known as the “uncanny valley.” This concept, first identified in 1970, describes the unsettling feeling people experience when encountering images that are almost, but not quite, realistic. Psychologists have observed similar reactions to AI-generated images of humans and even food. A Reddit commenter described one AI-generated home as looking like it was “built in The Sims.”
This sense of unease is linked to the concept of the “unheimlich,” a German word meaning “un-homely,” explored by Sigmund Freud. The feeling arises from experiences that challenge our sense of the familiar and suggest hidden, uncontrollable forces at play.
Legal and Ethical Considerations
While some AI-generated images may border on false advertising—particularly those with “hallucinated trees” or structural inconsistencies—the legal landscape remains unsettled. Current laws primarily address concealing substantial defects, such as a cracked foundation. However, homebuyers may be more sensitive to misleading imagery than the law currently requires.
What’s Next for AI in Real Estate?
It’s possible that the use of AI-generated listing photos will diminish as agents and buyers alike recognize the potential for disappointment. Spaniak now recommends traditional staging and professional photography. It is also possible that AI tools will improve, becoming more realistic and less unsettling. However, if current anxieties surrounding AI continue to grow, the technology may be viewed with increasing skepticism.
Frequently Asked Questions
What problem did Kati Spaniak encounter when using AI-generated photos?
Kati Spaniak found that potential buyers seemed disappointed and disoriented when viewing homes with AI-generated photos, even without being able to articulate why.
What is the “uncanny valley”?
The “uncanny valley” is a psychological phenomenon where almost-but-not-quite-realistic images are more unsettling than unrealistic depictions, like a drawing.
What does Freud’s concept of “unheimlich” mean?
“Unheimlich” literally translates to “un-homely” and describes a feeling of discomfort or unease stemming from experiences that challenge our sense of the familiar.
As technology continues to evolve, will the pursuit of the perfect home image ultimately enhance or detract from the emotional connection buyers seek with their future living spaces?